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Realistbear

A & L: We Are Getting Into Btl And Sub-prime Big Time

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http://www.hemscott.com/news/comment-archive/item.do?id=8681

Alliance & Leicester goes for buy-to-let

Rodney Hobson, 12/06/06 07:50

The bank is moving into the buy-to-let market. Mortgage arrears are down and the growth in bad unsecured debts has slowed but is still a worry as 2006 got off to a reasonable start.
Alliance & Leicester toldl analysts and major investors this morning that it is making good progress against each of its strategic objectives.
The savings and mortgage bank has continued to focus on the prime residential mortgage market. Gross lending in the first quarter of 2006 was £3.2bn, a market share of 4.3%, and net lending was £1.4bn, a market share of 6.3%.
The implication is that A&L is hanging onto its existing mortgage customers but losing market share for new customers.
Mortgage asset quality ‘remains excellent’ with the proportion of accounts in arrears lower than at the end of 2005.
However,
A&L will soon start to distribute buy to let, self certified, near prime and sub prime specialist mortgage products through a number of mortgage intermediaries, which does mean that it is moving into the potentially less reliable end of the mortgage market.
Unsecured personal loan gross advances were £565m in the first quarter of 2006, well down on £890m in the same period last year. This may not be a bad thing given the current consumer loans climate. In any case, unsecured loan balances have remained stable compared to the end of 2005 at £3.5bn..../

A&L: What was THAT!!!???

The Market: I just bit you on the ar*se

Today:

ALL & LEICS (LSE:AL.L)

Last Trade: 493.25 p

Trade Time: 8:43AM

Change: 22.25 (4.32%)

Prev Close: 515.50

Open: 525.00

Bid: 492.50

Ask: 495.75

1y Target Est: 475.87p

High in last 12 months 11.70.

Edited by Realistbear

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However, A&L will soon start to distribute buy to let, self certified, near prime and sub prime specialist mortgage products through a number of mortgage intermediaries, which does mean that it is moving into the potentially less reliable end of the mortgage market.

It's interesting to see how banks are forced to move into more risky areas to prevent themselves losing market share.

Of course that's during the credit expansion. Now we're in the credit contraction, and they're all running as fast as they can from risky lending.

Edited by BandWagon

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From the article:

A&L will soon start to distribute buy to let, self certified, near prime and sub prime specialist mortgage products through a number of mortgage intermediaries, which does mean that it is moving into the potentially less reliable end of the mortgage market.

After the great crash has blown through and house prices lie in tatters and a government in disgrace they will look back and wonder who to blame and the finger will be pointing squarely at the banking system and those who failed to give adequate oversight.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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